Businesses must not rely too much on their CFOs to check and verify the bills’ accuracy because their minds are already filled with other workloads. Automating account payable processes can reduce the extra load.
FREMONT, CA: 82 percent of startups fail because of poor cash flow. Managing account payable is often a second thought for entrepreneurs and small businesses. While running a business’s other aspects, businessmen often overlook how and when they are going to pay their bills. Managers who do not chalk out an effective accounts payable strategy can severely limit their liquidity, leaving them with insufficient funds to seize fleeting opportunities.
Let us look at some important tips to improve accounts payable management:
[vendor_logo_first]Paying Bills Early
It is good to pay bills on time, but it’s much better to pay bills early. In that way, vendors will have a good and long-lasting impression of the business owner. In turn, they will offer tempting offers and enticing discounts to keep business owners retained and pleased, helping owners pay less and save more.
Reducing Burden for CFO
Businesses must not rely too much on their CFOs to check and verify the bills’ accuracy because their minds are already filled with other workloads. Automating account payable processes can reduce the extra load. This way, they will only need to check the bill amounts and sign for payment release. Accounts payable team is responsible for collecting all invoices to be paid and getting the cheques printed and approved. Then, they should be put before the CFO for signature.
Accounts Payable Software
Businesses can automate their accounts payable process by leveraging an accounts payable software. Thus, they become paperless. Business owners can deal with the company’s analog bills and payment activities using computer systems or mobile phones. Besides, the purchase and payment approval process can be automated, which will save a lot of time.
